KUALA LUMPUR (Aug 24): DRB-HICOM Bhd registered an 80.11% plunge in net profit to RM33.7 million million in the second quarter ended June 30, 2023 (2QFY2023), compared with RM169.56 million a year ago, due to the absence of asset disposal gains recorded in the corresponding period.

The higher results in the corresponding quarter were mainly due to the group recognising the income arising from the disposal of then subsidiary Lotus Advance Technologies Sdn Bhd amounting to RM119.51 million under other income.

Quarterly revenue increased 12% to RM3.98 billion against RM3.55 billion a year prior, driven by the automotive sector — mainly with contributions from PROTON, automotive distribution companies, and manufacturing and engineering companies, DRB-HICOM said in a filing with Bursa Malaysia on Thursday (Aug 24).

Earnings per share (EPS) contracted to 1.74 sen compared with EPS of 8.77 sen in 2QFY2022.

The group recorded a net profit of RM141.62 million for the first six months of FY2023, a drop from RM143.82 million in H1FY2022.

This is on the back of RM8.09 billion in revenue for 1HFY2023 which represents a 22.1% increase against RM6.62 billion recorded in the corresponding period from sustained performance, especially in the group’s automotive and banking sectors, as well as improvements in other sectors.

PROTON recorded a 28.6% increase in sales volume or 77,321 units, with the Saga, X50 and Persona contributing more than 80% of PROTON’s total sales volume.

PROTON’s first new energy vehicle (NEV), Proton X90, continued to garner strong local demand to become the new D-segment SUV leader. Other marques within the DRB-HICOM group such as the all-new HONDA WR-V, is also taking the lead in in the small SUV market with over 2,500 bookings within a month of its launch.

“Overall, demand for the group’s offerings remains healthy. The group will continue to execute plans to enhance product ranges and service levels, including entry into the Malaysian EV market,” DRB-HICOM said.

Meanwhile, the banking sector recorded a 37.3% increase in revenue in 1HFY2023 to RM806.77 against RM587.69 million a year ago, primarily due to higher financing income led by the growth in financing volume.

This was attributed to sustainable growth and expanding customer base as well as the rise in the overnight policy rate to 3% in the current period against 2% in the corresponding period.

The group said its postal sector remains on track in its transformation roadmap, leveraging on technology to enhance customer experience and continue to adopt prudent cost control discipline.

The group expects a satisfactory financial performance for the financial year ending Dec 31, 2023 compared with the previous year.

DRB-HICOM shares were up nine sen or 6.08% to RM1.57, valuing the group at RM3.04 billion.